I have to give up my car – what will I do with it?

Having to give up your car is very distressing, but getting it sold can also be stressful. At best, you will get a fair price or make a family member a thoughtful gift; at worst you can be taken advantage of by unscrupulous buyers and dealers.

Obviously, selling to friends or family would be the easiest – you’d probably make less money, but it’s less stressful and everyone should be happy with the deal. Gift to a family member: Often, people will decide to simply give the car as a gift to a family member. In the case of a “direct linear” family member (parents, grandparents, children, but NOT your siblings), there is no sales tax payable.

Selling the car privately would return the highest price, but it’s also the most difficult method. Apart from dealing with strangers – other than time wasters and people who do not bother to show up for appointments, it can be dangerous, as well. One person I know let a young man sit in her car “for a quick look” in the driveway, and he just started it and drove away! Also, there is a lot of paperwork required in a private sale – in Ontario, for example, you have to get a Used Vehicle Information Package (UVIP) from the transport ministry, and unless you are selling the car “as is”, you will have to get a safety certificate from a licensed garage. DO NOT let the car go with your licence plates on it, and make sure that the new buyer actually transfers the vehicle out of your name – “curbsiders” will not do this and sell the car along to someone else for a profit and avoiding the sales tax. This is not only illegal, it’s also dangerous to you as the car is still technically yours!

For the right car, selling to a dealer may be an option. However, keep in mind that when dealers take cars as trade-ins, they are motivated by the money they will make on both the car you are buying and the car you are trading. If you are selling, not buying, they must make sure that they can buy your car at a price that enables them to recondition it (you may think the car is perfect, but the law for dealers is strict), and make a suitable profit. This will be as much as many hundreds or even thousands of dollars less than you might get in a private sale.

What’s your car worth? Obviously, the key is to have some idea of the real value of your car – this depends on many factors, including make and model, age and mileage, equipment level, and overall condition. Even the colour will affect the price! Fortunately, there are a couple of good online references to help arm you with this information:

Auto Trader: http://www.autotrader.ca/

(These are RETAIL prices. Use the “advanced Search” tool to search by year, make and model, and in your local area as prices can vary geographically).

Black Book: http://www.canadianblackbook.com/black-book-values

(These are WHOLESALE prices – what a dealer would pay for your car. Keep in mind that this is a guide only – the dealer is likely to offer you a lot less if your car is not in very good condition, or to maximize his profit potential.)

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